jon: thanks for being here, and happy thursday. jenna: "america live" starts right now. megyn: we are awaiting some possible news now in the showdown over iran's nuclear ambitions. the israeli media was reporting that the united states has offered israel advanced weaponry from america in return for an israeli promise not to attack iran's nuclear facilities this year. they are saying that was the proposal from president obama to prime minister benjamin netanyahu this week. don't attack through the end of 2012, and we'll give you bunker-busting bombs. we are awaiting white house response to that report, and that's where we begin today's edition of "america live." welcome, everyone, i'm megyn kelly. a front-page article in a major israeli newspaper saying israel asked the u.s. for advanced bunker-busting bombs and refueling planes that could improve its ability to attack iran's underground nuclear sites -- keep in mind this has

been the reporting, there is uncertainty whether israel can take out all of iran's bomb facilities given how intricate and deeply buried they may be. they say that this request was reportedly made around the time of israeli prime minister benjamin netanyahu's visit to washington this week. now, this story is still developing, but we also got an ap report late yesterday about signs that iran is trying to cover up what could be nuclear weapons work at one of its military bases. why would it be doing nuclear weapons work at a military base if its program is for peaceful purposes? the white house press briefing just getting started right now while we monitor all of this. we want to get to wendell goler who's life on the north lawn. >> reporter: no one will confirm the israeli report, in fact -- [inaudible] if it's true, however, they'll have to ask congress permission. less than a week after iran

agreed to resume talks with the permanent five members of the u.n. security council and germany, it is dragging its feet over a u.n. request to investigate a site that may have been used for nuclear weapons tests. now, the site has satellite images that appear to show earth-moving equipment there. the iranians denied them access to it then. the suspicion is the contaminated soil is being moved elsewhere before the iaea minuters are allowed -- inspectors are allowed to test it. iran's setting conditions on the eventual inspection. now, the iaea director general said yesterday iran is not telling us everything. iran insists, of course, that its nuclear program is peaceful. mean while, russia and china have watered down a u.n. security council resolution on iran's nuclear program that is being released later today. both countries have criticized western sanctions on iran. the president said tuesday that

the p5 plus 1 talks aren't going to be easy. >> on an issue like this, there are complexities. it obviously has to be methodical. i don't expect a breakthrough in a first meeting, but i think we will have a pretty good sense fairly quickly as to how serious they are about resolving the issue. >> reporter: israeli prime minister netanyahu warned that resumed talks with iran could be a trap aimed at running out the clock. the president promised then that that would not be allowed to happen. press secretary jay carney's briefing started moments ago, he'll likely be asked what this, these new claims say about iran's claim that its nuclear program is peaceful. megyn? megyn: wendell, thank you. again, reports about this weapons offer began inside of israel. we will go live to jerusalem at the top of the hour, our next

hour, and we'll continue monitoring the white house briefing and bring you the news as it breaks from the white house. turning now to the president's re-election bid. his campaign is now blaming republicans for recent fundraising challenges. the obama campaign is warning donors that if they want to keep barack obama in the white house, they'd better show him the money asap. team obama argues the prolonged republican primary is hurting president obama's ability to build up his campaign coffers, saying it's easier to raise money when you only have one opponent, one identified opponent. at last check the obama campaign has raised over $100 million, that is far short of the three-quarters of a billion dollars it collected in the 2008 race. but it's not for lack of trying. president obama has attended far more fundraisers than his recent predecessors had by this point in their first terms.

still, experts say, the rising costs of campaigns and the unlimited amount of super pac money helps this frantic pace. chris stirewalt is the host of power play at foxnews.com. chris, that's an interesting take from the white house, this is from david axlerod no less they saying i think it's easier to raise money when you have one opponent, so the republicans have too many candidates. >> that's right. it's the republicans' fault. no, look, it's interesting. you hear from david axlerod, megyn, in sort of the same conversation he says, oh, this republican process is terrible, it's killing them, these people are dopes, and they can't possibly beat president obama, but at the same time he says but it's making it harder for us to raise money. so as he's saying that these republicans are a hapless bunch, he's also saying that this process is making it harder for the president to raise the money that he needs to beat the eventual nominee. so it's both sides of the same

mouth. megyn: apparently, he has 137 million, barack obama does, in his campaign war chest. he would need to raise about $100 million a month or $25 million a week if he wants to reach a billion dollars by election day. now, they had been saying that that was about what he expected or his goal was to raise a billion dollars for re-election. now the white house is shooting that down. is there any chance they even get close to the 750 million at this point that they had last time around, chris? >> well, the president's now encouraging people to give to the super pac that's run by bill burton and his own people are appearing at events and encouraging donations over there. when you look at what's going to be together from the democratic national committee, the president's own re-election campaign and then the unlimited contributions over at this super pac, yeah, he's probably going to be back in that same neighborhood. but he has a much tougher poll this time in a lot of ways

because he can't just run on the hope thing, and he doesn't have the sort of enthusiasm from independents, from young voters that he had last time, and they have to pay for that. they have to build that from the ground up. megyn: how much of this is real? like they are actually suffering some, you know, they need more money, they're suffering from a comparatively small amount in the campaign coffers, and how much of this is the white house loring expectations -- lowering expectations, trying to get people to believe that they're the underdog as the president once described himself p in that race and that sort of approach? >> so it's back and forth. sometimes the republicans can't win, other times they're a secret doomsday device that's going to take on the president. a lot of times, obviously, it depends on the audience. when you see the president's relentless swing state campaigning, all the focus on gasoline prices, all of the focus that he's put out there on mitt romney, you get the sense that there is underneath all of this bravado that you hear that

there is a deep concern that once the republican process finishes up and it's on, that the president is going to be in a tough spot. and certainly his job approval ratings, even though they're up from where they were in the winter time, they're not where they need them to be to be strong for re-election. megyn: chris, thank you. >> yes, ma'am. megyn: another fox news alert, this one from capitol hill. we are awaiting a senate vote on a plan to fast track the keystone xl oil pipeline, essentially taking it out of the purview of president obama's approval. as you may remember, president obama put the $7 billion project on hold pending further environmental review. republicans argue that this pipeline which would ship oil from canada would create jobs -- they're estimating 20,000 now -- and improve energy security at a time of surging gasoline prices. we're keeping a close eye on this, and later this hour a closer look at new reports that the president himself is lobbying senate democrats to

reject this amendment that will call for the pipeline's construction. they say the white house is worried this thing could pass, the decision could be taken out of his hands, and he is now having to reach out individually to these senate democrats because they expect a tight vote on this. we'll have more on that in just a bit. fox news alert now on a story we have been following. the fbi launching an unprecedented attack on the nypd over its secret surveillance in some muslim communities. in an unusual public divide between two critical anti-terror efforts. trace gallagher has more live from the breaking news desk. >> reporter: in fact, just crossing the urgent wires right now, megyn, attorney general eric holder weighing in saying he's very disturbed about the reports he's reading about the new york pd, the nypd actually surveilling these mobs and muslim businesses in new jersey. it's very, very unheard of for one police agency to actually call out another. but the fbi in new jersey now says that because the new york police department is spying on the mosques and the muslim

businesses, it's causing the fbi's miss i limb sources -- muslim sources now to dry up. listen. >> we're starting to see cooperation being pulled back. people are concerned that they're being followed, people are concerned that they can't trust law enforcement. >> reporter: the fbi goes on to attack new york city police commissioner ray kelly saying that he's going beyond new york city boundaries, sending his police officers where they should not be. kelly has built a thousand-member counterterrorism force that is considered to be the best in the country, and the nypd has aggressively defended the program saying the unit is seeking out those who want to attack new york city, pointing out that terrorist attacks like the '93 world trade center bombing and the 9/11 attacks actually were masterminded in new jersey. new jersey governor chris christie recently criticized the nypd for not sharing its information. listen. >> that's the real danger of

this, that you can screw up cases that are ongoing, that you can miss leads, that you can put people's lives in danger. >> reporter: the new york mayor michael bloomberg is steering clear from comments of the fbi and chris christie, but he is defending ray kelly saying the program is working well, and we should know when he talked about this at the top, megyn, eric holder says the justice department now will look into this matter about the nypd surveilling mosques and businesses in new jersey. breaking news, megyn. megyn: indeed. i think we had reported last week that mr. holder had said they were considering reviewing it. now the news is they are reviewing it at the department of justice and this additional tidbit of eric holder saying he is disturbed by what he's learned about the program. trace, thank you. >> reporter: okay. megyn: well, again, we are awaiting white house reaction right now to these reports coming out of israel that claim president obama told the

israelis he would offer them new weapons if they would hold off on attacking iran until after the u.s. presidential election. well, until the end of 2012. we are live in israel with the complete story just ahead. and since when does chanting usa, usa get you accused of being a racist? we'll explain the story behind the chant and let you decide. and a testy exchange between a top lawmaker and defense secretary leon panetta after mr. panetta suggested the united states needs some sort of international permission slip if it wants to take military action. the growing controversy and the new fallout just three minutes away. >> we spend our time worrying about the u.n., the arab league, nato, and too little time in my opinion worried about the elected representatives of the united states. as you go forward, will you consult with the united states congress? wake up!

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megyn: new fallout this hour over an astonishing exchange yesterday between senator jeff sessions and defense secretary leon panetta. senator sessions grilling mr. panetta after the defense secretary seemed to suggest that america needs some sort of international permission before carrying out any military operation in syria. watch this. >> we spend our time worrying about the u.n., the arab league, nato and too little time, in my opinion, worried about the elected representatives of the united states. as you go forward, will you consult with the united states congress, and do you think that you can act without congress to initiate a no-fly zone in syria? without congressional approval? >> you know, again, our goal would be to seek international permission, and we would, we would come to the congress and inform you and determine how best to approach this, whether

or not we would want to get permission from the congress -- >> i'm really baffled by the idea that somehow an international assembly provides a legal basis for the united states military to be deployed in combat. i don't believe it's close to being correct. they provide no legal authority. the only legal authority that's required to deploy the united states military is the congress and the president and the law and the constitution. >> let me just for the record be clear again, senator, so there's no misunderstanding. when it comes to the national defense of this country, the president of the united states has the authority under the constitution to act to defend this country, and we will. if it comes to an operation where we're trying to build a coalition of nations to work together to go in and operate as we did in libya or bosnia, for that matter afghanistan, we want to do it with permissions either

by nato or by the international community. >> well, i'm troubled by that. i think that, um, it does weaken the ability of the united states to lead. if we believe something ought to be done, i'd be thinking we would be going more aggressively to nato and other allies, seeking every ally that we can get. but i do think, ultimately, you need the legal authority from the united states of america, not from any other extraterritorial group that might assemble. megyn: so is the administration inappropriately worried about getting international permission and not worried about getting congressional permission before it advances in places like syria? joining me now, fox news legal analyst peter johnson jr. there is already a big backlash against this, and when given the chance to, you know, restate it, secretary panetta continued to use that term, permission, international permission. and the congress is very upset

saying if you need permission from anybody, you need it from congress, not an international body. >> yeah, mr. panetta's statement -- and you pointed out, he said it twice -- it's somewhere between a gross distortion and obscene per vision of the -- perversion of the law and the constitution. that's not the law, that's not the constitution. there's a schism, there's a dynamic tension between congress and the white house as to the war power and when that kicks in and when you should go to congress. megyn: we saw this when we went into libya. >> we went into libya. and now we're talking about in terms of syria, and we've talked about it in terms of iraq and afghanistan when there weren't congressional authorizations, although not declarations of war. so the issue becomes as a matter of law the constitution or public policy, shouldn't you be turning to congress with regard to the war power? megyn: and just so our viewers know, what happened in libya was the president went in, he did not have the congressional approval in advance, but he

talked about how he had an international approval mandate and then the congress, including democrat, came out and said we don't care what international approval you have, you have to come to the congress as president bush did with iraq and so on. >> and as a close observer of this, you know that we deferred to the french on that issue for many weeks f not months -- if not months. and a lot of observe efforts have said in foreign affairs journals and the like that that would have ended all the sooner if we had taken a leadership position. so the issue becomes one of public policy, one of law and one of the constitution. are we going to act the way that america's acted in the past, in accordance to the constitution? are we going to allow our president now to act in an imperial way and say, listen, i don't know what we should be doing, but i think we're going to see if we can get a coalition of the willing first before we consult with congress, before we consult with the elected leaders who are empowered under the constitution to declare war.

it's upside down. megyn: you make the decision between policy and the law. >> correct. megyn: and can it be, could it be that because a defense official, unnamed, is trying to dial that back already saying he's talking about, you know, getting a consensus available or ready. is that as a policy matter he may have been speaking about policy. we want to have a coalition internationally rather than just going in, going it alone and not speaking to whether that's what we need legally. >> but it's not clear in what he said. and as a policy matter, it also seems demented. it would appear to me as one observer that you want to speak to congressional representatives, you want to speak to people in the senate, in the house to say what should we be doing, not going to people in europe, not going to people in nato, not going to the arab league, not going to the organization of independent states in the mideast. it's an american decision that should be made within american guidelines and law. not based on international consensus.

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megyn: fox news alert, a little more now on our alert from a few moments ago. attorney general eric holder told the senate today that the department of justice is going to review surveillance of mosques and islamic student organizations by the nypd. the attorney general told a senate hearing thursday, today, he has spoken to new jersey governor chris christie who strongly emphasized his concerns about the surveillance program. this is something that was started, we learned, in the wake of 9/11. surveillance of mosques and other muslim areas, organizations and individuals in an effort to determine whether there is any potential terrorist threat. it's been very controversial, and now we learn that the department of justice will be

reviewing that program, that the mayor and the commissioner of the nypd stand behind and say has kept new york safe since 9/11. therewe'll have more from washin top of the hour. well, congress holding hearingses on a crime that's ripping off taxpayers for hundreds of millions of dollars a year. food stamp fraud. the house is now launching an investigation after reports reveal that these schemes are getting more and more sophisticated. doug mckelway live in washington. doug? >> reporter: afternoon, megyn. you know, there's a common perception that food stamp fraud is increasing because usage is now at record levels. in fact, as members of the house oversight committee found out today, fraud is actually decreasing, it involves only about 1% of participants, much lower than those days where there was an actual physical food stamp, you know, the coupon instead of the debit card that is swiped nowadays. but fraud is increasing, as you said, in sophistication, often

committed by grocery store owners themselves, and it cost taxpayers $330 million in 2008 alone. one witness described how food stamp trafficking commonly works. >> a recipient will go to a restaurant or bar, and this is not a place where they would accept ebt cards. um, but they would go there, and the restaurant or bar would go to a grocery store and buy, say, $200 worth of groceries, and then they would for the bar or restaurant, and then they would give the recipient half, 75%, you know, something off of the ebt card. >> reporter: the violaters tend to be small, independent stores, not the major grocery store chains. fraud also tends to be more common among those stores that lean toward selling mostly liquor and cigarettes as opposed to groceries. they have to pay restitution, but stores that are barred from participating are often resold to new owners who are connected

to the old open owner and who commit fraud in the application process for food stamps. witnesses today say the application process needs to be more heavily scrutinized and, megyn, one more thing. oftentimes those stores that commit this kind of fraud tend to be the only store on a block in the inner city or in a rural area, so if you shut them down, you're causing a lot of harm, a lot of inconvenience to people, to the law-abiding citizens who use those stores commonly. megyn: it's incredible how you explained the elaborate ends that stores participate. here in new york city you go to buy groceries, they look at you like you're inconveniencing them if you want your groceries put in a bag, never mind they're going to buy something for you and do the switcheroo. >> reporter: maybe we need to send the investigators there. megyn: it's terrifying. the little tiny aisles, but you see another person it's like playing a game of chicken like,

oh, no, one of us is going to have to fold. >> reporter: be careful. megyn: fresh direct, that's the way to go. thanks, doug. i think it's a new york city thing, but it's awesome. of you can do your grocery shopping online. what are you doing? i'm going the grocery shopping. fifteen minutes on the ipad at home. look into it, it's great. well, we had some news from the white house about a report saying that president obama told the israelis he would give them new weapons including bunker-busting bombs if they would hold off on attacking iran until after this year's election. the newest twist is just ahead, and we'll give you the context on that. plus, this woman hit the jackpot, collecting more than a million bucks from a lottery win. but she then went on living on the taxpayers' dime. now we'll show you what happened after her story went national. and can chanting usa, usa be considered racist? why a high school basketball game is now a national controversy. are you receiving a payout from a legal settlement

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do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision, so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation, and indigestion. i've worked hard to get to where i am... and i've got better aces to go than always going to the bathroom. so take charge of your symptoms by talking to your doctor and go to vesicare.com for a free trial offer. megyn: fox news alert on our top story right now. the israeli media reporting that the united states has offered the israelis advanced weaponry in return for an israeli promise not to attack iran's nuclear facilities this year. a front-page article in a major israeli newspaper saying israel

asked the u.s. for advanced bunker-busting bombs and refueling planes that could improve its ability to attack iran's underground nuclear sites. white house press spokesperson jay carney spoke of a weapons deal, spoke in response to a question about this moments ago. >> in the meetings the president had, there was no such agreement proposed or reached. we have, obviously, as we've discussed high-level cooperation between the israeli military and the u.s. military and at other levels with other agencies within their government and our government. but, um, that was not a subject of discussion in the president's meetings. megyn: hmm. notice he did not say that this was never discussed in any level. the comment was this did not come up in the direct meetings between president obama and prime minister benjamin

netanyahu. our washington team and your own common sense underscores to you that it may have come up in other meetings. this is, again, on the front page of a major israeli newspaper today, that this was the deal that was proposed. are we giving israel bombs in exchange for holding off on an attack until after the presidential election, until the end of 2012? is that timing coincidental? we don't know at this hour. we only know what we're reading in the israeli papers, and you heard the white house response moments ago. we're going to talk about it, and we're live in israel just ahead. well, new questions today about the white house's stance on the keystone oil pipeline that would have stretched from canada down to the gulf coast. just a couple of weeks ago the president's press secretary, who you saw there, jay carney, insisted that republicans were to blame for killing this project, and that's not all. listen to what he said. >> the president didn't turn down the keystone pipeline. there was a process in place long, with long precedent run out of the state department because of the issue of a

pipeline crossing an international boundary. megyn: so it wasn't the president. but now there are reports that the president himself is personally lobbying senate democrats now to reject a new amendment that calls for the construction of this pipeline irrespective of what the president says. we expect that vote to happen later today. joining me now to discuss it, leslie marshall, she's a syndicated radio talk show host, and lars larsen, also a syndicated radio host with compass media networks. so jay carney was trying to say the president only said no to the pipeline when he said no because he was being forced to give a decision prematurely. he didn't want to issue a decision until more review, and he was forced so he said if i have to do it now, the answer's no. but the implication of the white house all along is he's been open-minded on this. now, lars, he seems to be lobbying directly to senate democrats saying don't vote yes on this pipeline today.

is that a contradiction? >> yeah, i think it's a contradiction. i think the excuse of hillary made me do it is not going to fly with the american public. you know, megyn, it's sad, but this president is guilty of petro phobia. he's simply afraid of allowing americans to have the oil, the diesel, the gasoline they need to make the country run. this is a sad thing when we see the intolerance of petrophobia practiced from 1600 pennsylvania avenue. the president needs to get over it, get behind the pipeline, allow those union jobs to go forward and allow that oil to flow. if we can allow millions of illegal aliens to cross our border, can't we allow a few hundred thousands gallons of barrel as to cross our northern border? megyn: pet rowphobia, leslie, you've got to love that one. if president is so open-minded to this depending on the environmental review and how things go, then why is he calling senate democrats? because they say this could be tight, he could lose. why is he lobbying senate

democrats to stick with the white house and not vote yes on taking the decision out of his hands? >> because, quite frankly, the state department hasn't been able to complete a full review, even the governor of nebraska who's a republican with a diversion says, wait a minute, this could pollute our water. and in addition to that, environmentalists are saying -- not just environmentalists, but scientists and the state department are saying we need to see what chemicals and how much of these chemicals are in the oil. god forbid there be a spill. so this isn't, no, no, no, we're never going to do it, this is a delay. this is until we have -- this is the same thing he's been saying before. >> until the election's over. >> no, he's saying no to this until we have reviewed everything to make sure we're safe. the people of nebraska deserve to have safe drinking water. megyn: you know, lars, there was a split between the environmentalists and the unions. the unions want the jobs, and the republicans want the oil, and the environmentalists are

more concerned about the environmental issues. there was a thought that the president sort of catered to the environmentalists on this and ticked off the unions, but -- because he had to choose one. but now he's doubling down. i mean, he's really saying he means it. he could have just said, environmentalists, i did you a solid, then congress took it out of my hands. he seems to really not want this thing right now. >> megyn, this seems easy to read to me. the environmentalists will use the water and, you know, the sand dunes and all that as an excuse. the fact is they don't want america using oil. and the president has said he wants america off oil. his energy secretary has said it out loud, his transportation secretary has said we will not favor motorized transportation over nonmotor rised. they want to take us back to, what, the bicycle era? this isn't going to work. and the fact is the president wants expensive oil because -- and he said so himself -- he wants $5 gas lean so that americans will get out of their cars. and this year for the first time americans have actually driven

fewer miles than they did all the way back to 2003. the president is getting what he wants. megyn: leslie, is he doing this at a political peril? already today -- forget once the gop presidential candidates get ahold of this, already today take a listen to the senate minority leader mitch mcconnell. >> and, frankly, it's hard to even comprehend how completely out of touch he is on this issue. i mean, think about it. at the moment when, at a moment when millions are out of work, gas prices are literally skyrocketing and the middle east is in turmoil, we've got a president who's up making phone calls trying to block a pipeline here at home. it's really almost unbelievable. megyn: your thoughts? >> well, i'm not surprised -- >> mine? >> that manmade it very clear that it is his and republicans' agenda to unseat the president, so that's not a big surprise, and it's not a big surprise that he feels that way not only because he's a republican. through a lot of people -- there

are a lot of people who feel that way. however, this is a president that knows more than we do, more than we do. the aftermath of what happened with bp, he doesn't want a repeat. hindsight is 20/20, and i think the president is being smart again in a preventive matter. is thnt saying no -- this isn't saying no pipeline, it's saying a delay of perhaps 09 days, insuring these materials are american made. that's not on the floor for -- megyn: i think it's a delay of longer than 90 days, but go ahead, lars. >> it's much longer than 09 days. the state department's question is simple, is it in the national best interests for this oil to pass the boarder? that's the technical question that hillary clinton has to answer. megyn: let her answer, and then i've got to go. >> okay. and by the way, have sandra fluke call her buddy in the white house and explain she can't get through law school without having gasoline for her car. that might do the trick. megyn: leslie, last word. >> oh, god. lars, i'm going to fall down from that one.

that's worse than connecting iraq to weapons of mass destruction. >> i figured you would. >> anyway, the bottom line here is if you're the governor of a state and that pipeline's coming through and they say wait and he's a republican, lars, please, i need to insure that the drinking water of my state is going to be safe when it's the number one killer of people and children throughout the world, dysentery, by the way, and secondly we don't even have the actual route it's been diverted to. megyn: okay, guys, thank you both so much. of coming up, one lucky woman winning a $1 million lottery and then going shopping with food stamps. the story going national after this woman says she didn't do anything wrong. and moments ago a house committee voted to move ahead with legislation that would kill one of the most critical parts of the health care overhaul. that breaking news is just three minutes away on a busy day here on "america live". >> many americans believe it to be a power grabby washington. when decisions are made behind

closed doors by 15 unelected bureaucrats, then the american people's worst fears are confirmed. and it proves why america remains worried that even more of the same is coming out of washington. laura ] maine is known for its lighthouses, rocky shore,

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when i need the energy to start exercising. every day. every day. every day is a 5-hour energy day. 5-hour energy. every day. megyn: fox news alert, a vote coming just a short while ago that clears the way for congress to repeal a major component of the president's health care law. the plan is to eliminate a health care board that has the power to decide what your insurance will cover and what it will not. joining me now, dr. marc siegel, fox news medical a-teamer, and tara dowdell, democratic political strategist and former aid to james mcgreevey. all right, panel, first of all, doctor, what was this board going to do? >> well, the purpose of this board, megyn, is actually to review medicare services and decide if they're essential and make recommendations about reimbursements. and theoretically, this board could end up cutting doctors' fees for services they don't think are essential.

the problem with that not only in terms of medicare -- by the way, the democrats have been saying, medicare, you get to keep your benefits, but if your services are cut, are you keeping your benefits? that's debatable. megyn: right. the health care law said this board was not going to be allowed to restrict benefits, so if they wanted to find medicare savings, they were going to have to cut doctors' reimbursements? >> right or recommend that the reimbursement for these services get cut. as a practicing internist, i don't always believe one thing is better than another. it depends on the patient. one patient needs an mri, another only needs a chest x-ray. it totally depends. and if you start saying one is better than another, the more the government gets involved in making recommendations -- and this 15-member board can be appointed by pocket appointments, it can be responding to lobbyists, it can be paid under the table, all kinds of ways this board can be influenced that could influence

what services medicare has to offer, and then the private insurers always follow suit. once medicare makes recommendations, then the private insurers say, well, we're not going to cover that either. so we're going to end up with less and less choices of what we can do for our patients. megyn: when you listen to that, you think, okay, go ahead and get rid of the board, but there is another side. >> yes. there is another side. i was about to jump out of my chair. this board, first of all, is going to be made up of health care providers and consumers. by law, it has to have that. it also has to be approved by the senate. the majority of the board members have to be approved by the senate. megyn: unless the senate's in recess and the -- >> no, by law, the president gets three appointments. by law this board has to find ways to save money. it cannot raise taxes by law, and it cannot, absolutely cannot ration care which is where you were kind of going with your argument, dr. siegel. and with all due respect here, i thought we all wanted to find ways to bring down costs of medicare, so i find it ironic

that to have this board made of health care providers and consumers in place, i don't see how that's a bad thing, and it's insulated from those very things -- bribery -- that's the whole purpose of taking it out of congress. megyn: by law, it can't ration care. >> this is a rhetorical word. by my definition, you're rationing care if you can't order a test. because it's not popular by some board, that's ration ld care. and the more they put road blocks in front of the services i want to offer my patients, the more it's rationing care. meg but we have to cut medicare cost cans, that's how it's funded in part. they have to cut some -- >> megyn, i've said from the beginning, let's cut nonessential services. and what is a nonessential service? that's really the question. by my opinion, it's that people can get to the doctors too easily. we have to put road blocks in front of overuse of the medical system. and you know what? we're getting rid of those things. co-pays, deductibles, those are going by the wayside.

i need those. i need payments out of pocket for patients -- megyn: so it makes them less likely to abuse the medical system, keep going to the doctor for everything. so this house is now approving, this committee says, all right, let's get rid of the board, but does this have to go through the regular legislative channels and get president obama to sign off -- >> yes, it does -- megyn: well, that's not going to happen. >> it had to get through the senate, forget president obama. but they're holding these hearings. this is all about the smear and fear campaign against health care reform and against president obama. that is what this is plain and simple. because if republicans are really so concerned about medicare, then they wouldn't support the ryan plan that turns medicare into a voucher program and also could double costs for seniors which is what the cbo says. megyn: gotta leave it at that. thank you both so much. >> thanks, megyn. megyn: coming up. when the winning high school team went to claim the trophy, the crowd started chanting usa.a

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megyn: new fallout today to report to you about a million dollar lottery winner who thought she still deserved some taxpayer money. michigan state officials swooping in after the winner revealed that she continued receiving food stamps and did not think there was anything wrong with that. trace gallagher has more. trace? >> reporter: she is amanda clayton, megyn, she is 24 years old and, yes, she won the million dollar michigan state lottery, and she decided to take the lump sum payout of $700,000, but she continued to collect $200 a month in food stamps and use them. well, the local news decided they would follow her, watch her use the food stamps and then confront her, and they did asking her if what she was doing she thought was right, and she said, and i'm quoting here: i feel that it's okay because, i

mean, i have no income. i have bills to pay. i have two houses. and, yes, she does have two houses and a new car that she bought with cash. well, now state lawmers are trying to push a bill that would stop this behavior. it would set up a system to cross-check lottery winners with those who are receiving public assistance, and it's not the first time that a lotto winner in michigan has been on the doll. remember leroy thick? he won $2 million, and he continued to collect food stamps. listen to him. >> sat there and try to make me feel bad, you aren't going to do it. it ain't gonna happen, so you might as well just ship on out. good-bye. >> reporter: the law says, by the way, if you get the annual payouts from the lottery, that's annual income. but if you get the lump sum, then you can collect food stamps. by the way, amanda clayton? they cut her off. she's no longer collecting food stamps we don't know about leroy

fink. [laughter] we don't know, he might still be on 'em. megyn: i don't think he's having any regrets. well, we are following a developing story from the fashion world today. reports of growing sales of a product called manty hose. think we're kidding? wait until you see the pictures. plus, keep an eye on electronics today. we're tracking a massive solar storm that could cause big problems here on earth. and the white house just weighed in on a report that we, that we -- the administration -- offered to sell israel powerful new weapons if the israelis would promise not to attack iran this year. we will hear the israeli side of this story next. >> in the meetings the president had, there was no such agreement proposed or reached. we have, obviously, as we've discussed high-level cooperation between the israeli military and

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*. megyn: brand-new developments in the showdown over iran's nuclear weapons program. we have been following reports for the last hour that president obama agreed to supply israel on upgrade weapons on the condition that they hold off on attack iran at least until the end of 2012. that headline blasted all over israeli newspapers. authorities in tel aviv try something down play the report calling it quote unrealistic. although nobody has denied it yet. what we know for sure is during this trip to washington, benjamin netanyahu asked for upgraded bunker busting bombs and advanced aircraft to improve israel's ability to attack iran's underground nuclear facilities. whether our president suggested

in response that we would do that in exchange for them holding off until 2013 is a piece of the story that remains unconfirmed. leland vittert has more on this from jerusalem. >> reporter: experts say israel has to hit iran sometime in the next six months, before the u.s. election in order to make a difference in the iranian's ability to get a bomb. the israeli air force doesn't have the necessary punch to go underground to where these nuclear facilities are buried. but if they got better weapons -- right now israel has reportedly 55 bunker buster bombs. made by the united states to go in 20 feet through reinforced concrete. they asked the united states for a lot more. up until now u.s. hasn't sold

them to them. the other thing. on the right hand part of your screen. that's what the u.s. has. it can go 200 feet of reinforced concrete. we don't know if that part of the deal. here is what's going on. the israeli f-15s and f-16s would need air-to-air refueling. right now israel only has 7 planes that were built in the 1950s. the united states has kc-10s. that has double the capacity. you understand the carrots involved here that the united states can offer. these could make certainly the difference between success and failure off an israeli attack on those iranian nuclear site. you have to realize what a political hot issue this is coming into the election.

president obama and netanyahu don't like each other very much and differ on the issue of an attack on iran. but the jewish lobby in americas very powerful. on the other than for prime minister netanyahu if president obama wins reelection he's in a better position to pressure israel not to make a hit whether they have these new weapons or not. megyn: what are the is reallies saying about the news that iran has tested a knew jar triggering device and is trying to cover that up? >> reporter: we is an we told you so. proof, iran is trying to build a nuclear weapon. the facility is 20 miles south of tehran. it's now believed there was a you are in on triggering -- there was a neuron triggering

device that would prove iran is trying to build a nuclear bomb. that something the israelis have been saying all along it all comes back to timing. iran says it welcomes president obama's request to have some more time and couple with a diplomatic option. at the same time iran says by the way, we won't end any of our enrichment or talk about ending our enrichment. issue of having a smoking gun out there does put this timing issue back on the table. we are closer to israel's red line. megyn: the white house took this question at the daily press briefing in the last hour. the answer was fascinating. listen to the press secretary jay carney as he denies this kind of deal was discussed quote at least in any meetings in which the president was -- wait before we roll it -- the reports in israel say this package deal

was proposed during the visit of prime minister netanyahu. during the visit of prime minister netanyahu. they say the u.s. pro posed a package deal. it didn't explicitly suggest it had to be between mr. obama and mr. netanyahu. listen to what the white house was willing to say on it. >> in the meetings the president had there was no such agreement pro posed or reached. we have obviously as we discussed, high-level cooperation went israeli military and the u.s. military, and at other levels with other agencies within their government and our government. but that was not a subject of discussion in the president's meetings. >> reporter: you seem to be specific in saying the bunker

busting bombs were not discussed in the president's meetings. >> i have no information regarding -- i would refer to you other officials. this was not a discussion -- no agreements of that kind were reached. nothing was -- in the president's meadeings, yes. megyn: what do you think? what are they trying to tell us here? the unthinkable should happen? if iran gets a nuclear bomb, where do we go from there? we have ambassador bolton and gillerman saying they believe the time is running out. they believe if israel waits longer than spring iran will have a nuclear tbhoment hand of ahmadinejad. openly saying he wants to wipe israel off the face of the map. is that real? is that going to happen? these are all questions that have been asked to top military commanders. one american stan one israeli

will weigh in on that right here. another big story breaking in the last hour. new reaction from the country's top law enforcement officer to the surveillance of some muslims by the nypd. attorney general eric holder saying he is disturbed by reports of the monitoring that went on here in new york city. and he says the department of justice is now reviewing this practice. our chief intelligence correspondent catherine herridge has more. >> reporter: at this morning's budget meeting attorney general eric holder was asked by two leading senators for more information on the new york police department's controversial surveillance of mosques and muslim student centers. he characterized what he has seen so far as disturbing. >> how can a law enforcement agency spy on another state's

resident without notifying the authorities or the governor and mayor not knowing about it? >> we are in the process of reviewing the letters that have come in expressing concerns about those matters. and i think at least what i have read publicly -- just what i have read in the news papers is disturbing and these things are under review at the justice department. >> reporter: holder also telling senators he has spoken to new jersey governor chris christie who according to holder has strong reservations about the program. he did not say fit was a lack of coordination between the departments. defenders of this program, including congressman king of new york says it has kept the city safer and has broken up two major plots including one on the

subway. megyn: new reports that iran is not being straight forward and is covering up its intentions with its nuclear development. we'll have more on the possible deal proposed between the united states and israel on this. new details in the case after missing cruise ship passenger. the missing woman's family say they know what happened to her. just ahead. defense secretary panetta getting grilled by congress after suggesting the u.s. needs some sort of international permission slip before taking military action in syria. >> on a legal basis you are worried about an international legal basis but nobody worried about the constitutional legal basis this congress has over war. wake up!

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megyn: new developments in the case of a missing cruise ship passenger who disappeared just over a week ago. the family pointing the finger at her boyfriend, the man who reported her missing. the two were on a celebration cruise and she disappeared while the ship was between florida and the bahamas. police have not named her boyfriend as a suspect but relatives say she told them their relationship was -- was souring before this cruise. evidence is piling up that iran was lying about its nuclear program. satellite pictures show trucks and bulldozers. analysts say that activity indicates efforts to clean up radioactive traces possibly left by tests of a weapons trigger.

bill cohen and natali bennett. thank you so much for being here. the reports are diplomats are now confirming that the satellite images of this iranian uranium facility show trucks and earth-moving vehicles at the site trying to clean up radioactive traces that would have been left by tests of a nuclear weapon trigger. i think a lot of our viewers are watching this thinking, iran is not being straightforward about their nuclear weapons program? what a shock. >> what's probably most interest being this report is people need to realize this is not america saying that, it's not the israelis saying that. it's foreign diplomats from other countries saying it appears the iranians are working

on a trigger for the nuclear weapons. so we have to consider the course. it shows what the iranians are trying to accomplish while the world sits back and watches. has talks and impose.sanctions. megyn: is there any way this could help avoid a bomb on iran's nuclear facilities in israel can turn to the world and say it's still more evidence the entire world community needs to get onboard with these sanctions and pursue this diplomatic solution as opposed to bombing iran. >> the iranians are test agnewtron general ray -- are testing a neutron generator. iran is racing towards acquiring

a nuclear weapon. it installed recently 2,600 new centrifuges underground. the sanctions are way too slow and way too soft to stop iran. what is needed now is shock and awe type sanctions that will bring iran to the brink of collapse. that means, a, sanctions now in march, not in june. and secondly and this is very important, no talks until there are inspections. inspections first, talks later. that's why we are concerned about the notion of engaging in discussions with iran. megyn: i want to ask you about these reports coming out of israel. when benjamin netanyahu visited here in the united states and met with president obama discussions were held, we don't know if it was at that level between the two executives or a lower level in which a deal was proposed that the united states

would get advanced bunker busting bombs in exchange for a promise that israel would not attack iran in the remainder of 2012. one official is -- israeli official is down playing that as unrealistic. but when our own press secretary was asked about that, he would only say it did not happen in the meetings between the two executives. when pressed to rule out it happening at any level i'd did not sounds like he did so. >> reporter: the upgrade bunker buster bombs, if i were an israeli i would agree to anything with the president but i might have my fingers crossed at the same time. we have a president who is driven by time lines. he had a time line to get our troops out of iraq about it even of 2012, we did that. we have a time line to get out of afghanistan, we won't see

victory. the notion that the israelis have to operate on a time line is ludicrous. the israelis are facing a threat. they need to make decisions on their own behalf. we need to thereby to support them. i don't know when or where the meeting may have been held but i hope we'll support the israelis the way they need to be supported. megyn: you were the cheever of staff to benjamin netanyahu. what do you think about these reports? do they strike you as possible or true? >> i don't see any situation in which netanyahu and the israeli people would outsource israel's security and very existence to president obama or to america. at the end of the day we are looking at a relatively short time frame after which iran's facilities will be underground and immune to potential israeli attacks.

we cannot hand over our fate to president obama. that not going to happen for any sort of deal. i don't believe there is a deal on the table of that sort. megyn: the report was -- this has all been translated. it was in an israeli newspaper. maybe you read it directly and you can enlighten us. the translated version i read said during netanyahu's visit the u.s. proposed a package deal. they didn't say the was barack obama. they didn't say netanyahu or israel accepted it. is that your information? >> there is no way prime minister netanyahu would accept any deal that outsource our fate to america. we have to understand iran is using the maneuvering delay tactics. what is happening now is like a policeman knock on a drug dealer's door and the drug

dealer says come back in a few hours. then you hear the toilet flush and a vacuum cleaner and then the drug dealer says you can come in, i'm clean. it's time to apply paralyzing sanctions on iran, that's the only chance to avert the need of an attack on iran. if that doesn't work there will be a need to stop them with force. megyn: a display of patriotism by high school kids getting some people all riled up. chanting "usa, usa" after the team won a basketball game. why the school felt the need to apologize. the largest solar storm in years and it could cause serious problems on earth. do you have anything for a headache...like excedr...

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megyn: we are watching for word of major electronic disruptions caused about it sun firing solar flares at the earth. it could cause problems with satellite system and entire fourth grids. >> reporter: it's up there. earthlings are in for a light show. it's hitting right now. the storm started with a massive solar flare tuesday. shake the globe's magnetic field.

a massive cloud of radiation speeding towards earth at 4 million miles an hour. charged particles started hitting the earth early this morning at 5:00. they could disrupt utility grids, airline flights, satellite and gps services especially in northern areas. since technology has flourished since last solar storm peak scientists say newer gps systems could be at risk. >> high technology of course is always veiler inable because we have got it up at the level where this stuff is coming in. it didn't used to be like this. but since we started putting satellites up in space we had to deal with this as well. >> reporter: planes that fly over the north pole could be rerouted to keep from exposing pilots from too much radiation. a strong solar storm knocked out

the power grid in quebec causing 6 million to lose power. the solar flare in january created some spectacular northern lights and we could see a similar show when the lights hit their peak tonight. this is last night taken over lake superior in michigan's upper peninsula. a full moon could make them harder to see. keep your eyes to the sky. have you ever seen northern lights? megyn: no, but that's beautiful. now i have more to worry about with the a little lady on the gps. the biggest worry between me and the gps is caution! >> reporter: you must just not drive. megyn: thanks. a little context on solar flares. nasa is predicting this is a problem that could get even

worse. they expect solar flare activity to speak in 2014. they could cause $2 trillion in damage and losses. you can see up-to-the-minute at this developing story at our web site. head over to foxnews.com for all the latest headlines. did you ever get that from the gps lady? discussion! a high school basketball team wins and the fans erupt with this chant. "usa, usa! " now they are being slammed as racist. first one, between two, then three. now four claims to the same lottery ticket. the court is getting crowded. but who is the jackpot's rightful owner? we have all sides represented in

today's "kelly's court," a special "kelly's court." defense secretary leon panetta would seek international permission before acting to stop the slawder in syria. critics ask when did the u.s. start needing a permission slip to take military action. >> are you saying and is the president taking a position he would not act fit was in our into the do so if the u.n. security council did not agree? - 8% every 10 years. wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor? it's the amino acid metabolite, hmb to help rebuild muscle and strength naturally lost over time. [ female announcer ] ensure muscle health has revigor and protein to help protect, preserve, and promote muscle health. keeps you from getting soft. [ major nutrition ] ensure. nutrition in charge!

megyn: we are awaiting senate vote on a plan to fast track the keystone xl oil pipeline. president obama put the project on hold pending further environmental review. republicans argue this pipeline which would ship oil from canada would create jobs and improve energy security. now the senate is attempting to do a by pass around the president an is personally calling democratic senators to try to get their votes against this proposal. so it could be tight. we'll update. back to one of our top stories. new questions about how the u.s. is making military decisions these days. senator jeff sessions asking defense secretary leon panetta several times about

mr. panetta's suggestion that the united states somehow needs international permission before it might take military action in syria. listen to this. >> we spend our time worrying about the u.n., the arab league and nato and too little time worrying about the elected representatives of the united states. as you go forward will you consult with the united states congress and do you think you can act without congress to initiate a no-fly zone in syria without congressional approval? >> our goal would be to seek international permission and we co-would come before you and determine how best to approach this, whether we would want to get permission from the congress -- >> i'm baffled by the idea somehow an international assembly provides a legal basis for the united states military to be deployed in combat.

i don't believe it's close to being correct. they provide no legal authority. the only legal authority that's required to deploy the united states military is the congress and the president and the law and the constitution. >> let me just for the record be clear again, senator oh there is no misunderstanding. wit comes to the national defense of this country, the president of the united states has the authority understood the constitution to act to defend this country. and we will. if it comes to an operation where we are trying to build a coalition of nations to work together to go in and operate as we did in libya or bosnia for that matter, afghanistan, we want to do it with permission by nato or the international communities. >> i'm troubled by that. i think it does weaken the ability of the united states to lead. and we believe something ought to be done. i would be thinking we would be

dog going more aggressively to nato and seeking every ally we can gets. i think ultimately you need the legal authority from the united states of america, not from any other extraterritorial group you might assemble. megyn: that exchange has the pentagon scrambling to clarify panetta's remarks. the former vice chief of staff for the u.s. air force. and sirius xm radio host david webb. we assembled all these gentlemen to help us break down what did and did not happen there. let me start with you, simon. as a democrat and a defender of the administration and somebody who assisted president clinton in the day when panetta worked there, what was he trying to say. that word permission is what got him in trouble. >> i think what he was trying to

say is there are times west' better to act in a coalition. i think he clarified it in the tape you just showed. what we did in libya worked. we worked with an international coalition. qaddafi is not there. the notion that this administration has not been agile or adept at manage this situation in the middle east is just false. mubarak is gone, usama bin laden is dead. things are getting better over there. we have two important jobs to do which is deal with syria and iran. and i think what panetta was saying is we have to do this in an international setting with the coalition and he made it clear we don't need permission. he clarified this. you don't need permission under american law.

megyn: he did make it clear. but the question is, the question is, let me go to you. is whether panetta what is revealing something about the administration's true philosophy that we are not going to fact places like syria or iran before we get a permission slip from international allies. >> we did not get permission from the congress on libya. and that is a violation of the constitution. simon has a lot of good points. but they are not relevant to the constitution. by the way, simon, i think it's an arab winter rather than an arab spring. but the previous chairman of the joint chiefs of staff, admiral mullen, and secretary gates, let the administration do that and should have pushed back. they are sworn to uphold the constitution. and they did not. and i think we are on a

dangerous slippery slope that needs this kind of discussion. megyn: the president took heat because he went into libya without getting congressional approval. then the administration kept touting the fact they had international approval. are they setting themselves up for a political controversy here in syria talking about the need for international permission and then we'll go talk to the congress about it? >> it goes to the basic, if you will, doctrine of this administration. they take a world view. they don't look at the constitution. the constitution guides clearly. and even if you have the argument about the war powers resolution it refers back to the constitution. the president's responsibilities, congress' responsibilities, and why it's tied to the funding of any

action. this president believes in this global philosophy -- and by the way, there is no peaceful transsnition libya. on those willing to suspend reality look at what's happened over there. in syria we have a much more dangerous situation. we have a well armed great air defense systems. a mobile situation when it comes to their military and the fact that they have chemical weapons. we have a dangerous situation, and it goes back to what is our national interest there? why would we act? megyn: simon, do you think mr. panetta was trying to go for, what we need is an international mandate. it's not permission. we need the support. other countries so we don't have a got it alone strategy in the muslim world where it will create belowback on americans worldwide. >> ask usama bin laden in pakistan whether barack obama got permission to taken by *

out. this notion that he's willing to defer to others the national security of the united states is ridiculous and insulting to what he has done as president. he has taken more unilateral action through drones to take out bad guys then arguably the preceding president. what panetta was trying to say and we have been talking about people who used the words inartfully when they discuss things in public. what panetta was saying is in this case it would be better to go with the coalition. it worked in libya. what's amazing to me to his to the debates is this assumption what we did in iraq and afghanistan where we led with the military without a strong plan for what happened after we went in there, were two of the greatest blun customers the history of the united states. when we are looking at syria and rwanda -- to make sure what we

are doing -- megyn: general, then i have got to go, then david. >> simon isn't talking about the subject at handing, the questions you are asking. we are talking about the constitution, what the president can do under the constitution. going to international organizations does not mean you bypass the constitution. that's all we are talking about, megyn it, a very good question and if simon would get back on point we would have a more important discussion on what the constitutional role is, his role is, and what he's avoiding. megyn: david? >> absolutely right, general, his is about the constitution and following the rule of law. that's what's suppose to be done in this country. we don't have what the founders warned us against an imperial presidency. megyn: thank you all so much. good debate. megyn: an update to a "kelly's

court" that had people hearing cha-ching over a $1 million scratchoff prize. she scratched it, threw it in the garbage. someone else picked it up, now several people are laying claim to the million bucks. all sides represented in a special "kelly's court" next. there are patients who will question,

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discarded lottery ticket and she cashed it. but the store manager sued her saying it's mine, i didn't discard it, you weren't supposed to take from that bin which had a sign on it that read "do not take." but soon the original purchaser of this ticket has joined this case saying you don't get it lady to found it, you don't get it lady who stole it, i get it because i originally bought it and discarded it. who the heck has the right claim? joining me now, kimberly guilfoyle who is cohost of "the five." and kimberly you are representing who? >> sharon jones. the individual who found abandoned and voluntarily discarded lottery ticket, winning million dollar ticket in the trash and it's hers.

the claw is clear in arkansas. you don't even have to go to law school to figure this one out. finder's keeper's. loser's weepers. >> i represent the manage earen the store and guilfoyle's client is off her rourke. even when my 5-year-old knows if daddy says do not take, if he takes he gives it back when i catch him. now in this instance it said do not take clearly on the garbage can. so what guilfoyle's clients did was stole something she shouldn't have. megyn: who are you representing? my * my client sharon duncan is the on innocent person. she used the ticket scanner on

the discounter owned by the store. put the ticket delight and it said loser so she tossed it in the trash. relying to her legal detriment some that that ticket was a loser. megyn: she just got added to the case. that pretty persuasive. she bought the ticket, she was told by mat shine it wasn't a winner with it was. why doesn't david's client win? >> because those aren't the facts. this is a scratchoff card and she didn't scratch it all off. ebb my 5-year-old when he buys his lottery tickets he knows to scratch all of the boxes off. and he knows when he discards something in the garbage -- >> in that case my client wins again. and she has got the million dollars so i'm getting paid. the rest of you good luck.

megyn: mark is relying on the fact that the bin said "do not take." but your client says the sign wasn't there when she picked up the ticket. >> it was put on after the fact. she is not able to profit just because she posted it after. megyn: it's a little convenient when a million dollar winner come out of there. >> under arkansas law you have to knowingly and voluntarily abandon your possessory rights to that ticket. what she did legally to her detriment on that scanner on the counter owned by the store and it said you got losers and tossed the ticket -- megyn: why didn't she scratch

harder? >> it doesn't matter. she is legally allowed to rely on what that machine tells her. the machine is more accurate than you and i. >> we have to go back to the sign. i have two words for you. rondy smith will testify under eat that that sign was there. megyn: you can find me an independent witness to testify to that i might be more persuaded. your client on wins if that sign wasn't there and david's client was an inefficient scratcher. >> i think we win anyway. the law is clear in arkansas. that sign posted above isn't going to be sufficient. megyn: great debate. up next we'll have that basketball story about the chant

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megyn: an apology for chanting usa! after a basketball game in texas. the fans were told about it winning coach to stop it offended people from the other school district. they took it as a racist insult. >> reporter: you have an all white school and a mostly hispanic school. the head coach of the basketball team went over and stopped the students because he thought it was inappropriate. but the super intent -- but the superintendent of both stools

thought it was racist. >> it's commonplace in international games and the olympics. not necessarily two high schools playing against one another. >> reporter: the students who chanted usa! including hispanic students are not allowed to go to the next basketball game. they say we chanted usa clam during many games. we just spoke to a parent from edison high school is edison fans are chanting alamo white, alamo white, instead of alamo heights. the superintendent says it doesn't matter what other did or didn't. we are responsible for our own actions. he says we are no longer commenting. we and edison high school want to move on. megyn: that's an interesting story. trace, listen to this. they are not just for women

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